In the course of my professional society memberships I receive an email newsletter called API SmartBrief from the American Petroleum Institute. An article caught my attention today. The API newsletter blurb read-
“Senators say methane rule will have unexpected impact“
“The Obama administration doesn’t understand the full economic effect of new federal rules meant to cut methane emissions from oil and natural gas production, according to a letter signed by Sen. David Vitter, R-La., and colleagues. “Given that so many of our communities are being impacted by current market conditions, [italics added for emphasis] any new regulations impacting oil and natural gas should be based on reliable, transparent data that is devoid of any political considerations,” read the letter sent to Environmental Protection Agency Administrator Gina McCarthy.” 5/23/16
This API summary is sourced from HoumaToday.com.
The alarm expressed by Vitter, API, and unnamed others struck me as amusing. The methane rule will have unexpected impact. Golly Mr. Wizard, tell us more. Naturally, API is beating the drum for petroleum interests. It is their charter, after all. Vitter bemoans the cost impact on workers and communities in his state and, to be sure, that is his job. Thus, the interpenetrating political-industrial partnership seems aligned in their opposition to possible rule making by EPA. Alles ist in Ordnung.
The funny part is that the current market condition cited by Vitter and, I would suppose, API, is the result of years of delirious drilling and hydrofracturing of oil and gas deposits. Perhaps someone of credible standing mentioned that a bubble was forming and that maybe, just maybe, we’ll end up with a glut. If such a voice did arise, it was not widely cited, at least to my knowledge.
So, this self-inflicted malady of excess supply and low prices has crept up on this colossal industry with it’s legions of swingin’ d**ks leasing and drilling methane glory holes. Boom and bust is not new to big oil. Not unexpectedly, OPEC failed to cooperate and reduce their oil production, the greedy bastards. King coal is staggering like a large sauropod after an asteroid impact. And even more dismaying to big petro is that solar, wind, and who knows what else is creeping upwards in power production and taking market share.
With all of this recklessness with oversupply, could it really be that big oil is bad at basic price collusion? Shiver me timbers!
My point is that using a self-inflicted market down-turn to justify reckless disregard in furthering large scale contamination of the atmosphere is a malfeasance of the first magnitude. If the free market gave birth to such an awful turn of events as an oil and gas oversupply, how can we expect the invisible hand of the market to steer us away from certain ecological ruin through destruction of the biosphere from accelerating consumption and advancing overpopulation?
The market is like the male sex organ. It has no brain and seeks only one thing- More.